Salt Lake City, UT -- Jan 10, 2000 -- Microsoft Corporation and Caldera,
Inc. today announced that the parties have reached a mutually agreeable
settlement of an antitrust lawsuit filed by Caldera in July 1996.

"We are pleased to put this issue behind us," said Tom Burt, General Counsel
- Litigation for Microsoft. "Rather than litigating, we prefer to focus on
building great software for our customers in this dynamic and competitive
industry."

"We are pleased with the result of this lawsuit. We now look forward to vigorous
competition in the marketplace with our Linux products and strategies both
from Caldera Systems, Inc. and Lineo, Inc.," said Bryan Sparks, CEO of Caldera,
Inc.

The terms of the agreement are confidential. Microsoft will record a one-time
charge against earnings in the quarter ending March 31, 2000, which will
reduce earnings per share approximately three cents.

Microsoft Corporation

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software
for personal and business computing. The company offers a wide range of products
and services designed to empower people through great software - any time,
any place and on any device